Retention bonuses don’t qualify as wages under Massachusetts law, the state’s high court said Wednesday, rejecting a tech employee’s attempt to hold his former employer liable for a delayed payout.
The Massachusetts Supreme Judicial Court found that the retention bonus payment wasn’t a wage because it wasn’t made in exchange for the employee’s labor or services. Instead, the sum was an incentive for the employee to remain with the company following its merger and rebranding.
“We see no reason why retention agreements should be treated any differently from other types of compensation that are contingent upon continued employment to a ...
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